Fed's New York President John Williams says inflation to ease, warns of possible rate hikes

John Williams Federal Reserve inflation outlook potential rate hikes 2028 inflation target

Federal Reserve Bank of New York President John Williams said he remains optimistic that inflation pressures are on a gradual easing path and that the current monetary policy stance is well positioned to bring inflation back to the 2% target by 2028. He noted that energy prices and trade tariffs appear to have peaked and that disinflationary forces should reassert themselves, forecasting that inflation will decline in the second half of this year and further next year.

Williams added that if the economy does not stay on a trajectory toward the 2% goal, the Fed would act appropriately with rate hikes. He referenced ongoing supply‑side pressures from the Iran war and former President Donald Trump’s tariffs, as well as demand‑side pressures from AI‑related investment. The Federal Open Market Committee left the federal‑funds target range unchanged at 3.50%‑3.75%, but three Fed officials dissented, calling for a hike.

Entities: 2028 inflation target · Federal Open Market Committee · Federal Reserve · John Williams · United States

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 11 SOURCES] John Williams said he expects inflation pressures to ease gradually. (John Williams)
[● 11 SOURCES] Williams forecast inflation will come down in the second half of this year and further next year. (John Williams)
[● 11 SOURCES] Williams warned the Fed will act with rate hikes if inflation does not move toward the 2% target. (John Williams)
[● 11 SOURCES] Three Fed officials dissented from the FOMC meeting’s statements. (Federal Open Market Committee)
[● 11 SOURCES] Williams said the current interest‑rate policy is well positioned to bring inflation back to target. (John Williams)
[● 11 SOURCES] The Federal Open Market Committee left the federal‑funds target range unchanged at 3.50%‑3.75%. (Federal Open Market Committee)
[● 11 SOURCES] Supply shocks from the Iran war and trade tariffs are adding upward pressure on inflation. (John Williams)
[● 11 SOURCES] The inflation measure the Fed uses for its 2% target rose 3.7% year‑over‑year in June. (Federal Reserve)